Iraqi Kurdistan minister says no link between oil sales and Islamic State

LONDON, Dec 1 (Reuters) - The Iraqi Kurdish minister for
natural resources said on Tuesday reports that the regional
government was helping smuggle oil from fields controlled by
Islamic State militants were "wild imagination and
unsubstantiated".

Speaking at a conference in London, Ashti Hawrami reiterated
comments made in a statement by the Kurdistan Regional
Government's ministry of natural resources on Monday that every
drop of oil flowing through its system was accounted for.

"We do everything to ensure that every barrel is accounted
for," Hawrami told the conference.

The ministry issued the statement in response to what it
said were misleading reports that suggested some crude exports
had originated from Islamic State-held territory.

U.S. defence officials estimate Islamic State was earning
about $47 million per month from oil sales prior to October.

The State Department estimates production from Islamic
State-held oilfields is around 40,000 barrels per day (bpd).

"(These reports are) wild imagination and unsubstantiated,"
Hawrami said, adding that his government was working hard with
allies to disrupt supplies from oil produced in the swathes of
Iraq that are under Islamic State control.

Kurdistan began bypassing Baghdad and exporting oil directly
in 2014 following a dispute with the federal government about
its share of the budget. It is currently exporting more than
500,000 barrels per day (bpd) of oil.

"We are dealing with Daesh on the front line. We have bombed
their infrastructure. Not one drop of oil came in (from Daesh),"
he said, using an Arabic acronym for Islamic State.

The KRG said on Monday all crude oil that moved through its
pipeline to the Turkish port of Ceyhan, as well as all cargoes
loaded at that point, had been verified and there was no
question as to their origin, in response to reports that it was
enabling oil produced in Islamic State-held areas to be sold
along with its own output.
(Reporting by Simon Falush; writing by Amanda Cooper; Editing
by David Evans)